Merck acquires German biotech firm Rigontec, to advance its I-O portfolio

US pharma giant Merck & Co (NYSE:MRK) has announced that it will acquire Rigontec, a Germany-based leader in retinoic acid-inducible gene I (RIG-I) targeting therapeutics, marking the company’s first M&A deal this year.

Under the terms of the agreement, Merck, through a subsidiary, will make an upfront cash payment of 115 million euros ($137 million to Rigontec’s shareholders; based on the attainment of certain clinical, development, regulatory and commercial milestones, Merck may make additional contingent payments of up to 349 million euros, making the deal worth around $600 million. The transaction is subject to certain closing conditions.

“Rigontec’s immuno-oncology approach of engaging the innate immune system to safely eliminate cancer cells complements our strategy and our current pipeline,” said Dr Eric Rubin, vice president of early-stage development, clinical oncology, Merck Research Laboratories, adding: “We are eager to build upon Rigontec’s science as we continue our efforts in bringing forward meaningful advances for patients with cancer.”